TOWR - Entities’ credit facility extended

TOWR - Entities’ credit facility extended Entities of Sarana Menara Nusantara (TOWR), Protelindo and iForte have announced an extension of credit facilities with Bank Danamon (BDMN) signed on October 20. The 60 month tenure- credit facilities are extended until 12 September 2024 that worth IDR1 tn. (Source : Kontan) Comment : High interest environment has become major headwinds for capex intensive industry, especially TowerCos as credit facilities generally tend to have higher cost of finance than fixed term loans, which may impact to its bottom-line. Despite that, we remain sanguine with TOWR's ability to repay debts thanks to its robust cash flow. We maintain our BUY rating on TOWR with slightly lower TP of IDR1,380.